Chapter 1 PDF

Test Bank - Advertising and IMC Principles And Practice, 11th Edition (Moriarty, 2019)
Advertising & IMC: Principles and Practice, 11e (Moriarty et al.)

Chapter 1 Strategic Brand Communication
1) Marcom is an abbreviation for ________.

A) marketing company
B) marketing communication
C) market company
D) market communication
E) market community
Answer: B
Learning Objective: 1.1: What is the marketing mix, and how does it send messages?
Difficulty: Easy
AACSB: Written and oral communication
2) The goal of marketing is achieved by matching a product's availability to the ________.

A) competition's availability
B) previous year's level of sales
C) company's production capabilities
D) consumers' need, desire, or demand for the product
E) legal limits of availability
Answer: D
Difficulty: Moderate
3) The various marketing communication messages and brand experiences that create and
maintain a brand are referred to collectively as ________.
A) brand position
B) point of differentiation
C) brand communication
D) added value
E) integrated marketing
Answer: C
Difficulty: Easy
4) The four tools of product, price, place, and promotion are collectively referred to as the
________.
A) product mix
B) promotion mix
C) marketing mix
D) integration elements
E) exchange elements
Answer: C
Difficulty: Easy
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5) The marketing mix is also known as the ________.

A) four Cs
B) four Ms
C) competitive advantage
D) marketing channel
E) four Ps
Answer: E
Difficulty: Easy
6) To marketing communication partners, the company or firm behind a brand is referred to as

the ________.
A) intermediary
B) vendor
C) client
D) supplier
E) distributor
Answer: C
7) Which of the following are considered "key players" in the marketing industry?
A) marketers
B) suppliers or vendors
C) distributors or retailers
D) agencies
E) all of the above
Answer: E
Difficulty: Easy
8) Which key player in marketing refers to the organization, company, or manufacturer

producing the product and offering it for sale?
A) marketer
B) supplier or vendor
C) distributor or retailer
D) agency
E) brand manager
Answer: A
Difficulty: Easy

9) The materials and ingredients used in producing the product are obtained from other
companies that are referred to as the producer's ________.
A) marketers
B) suppliers
C) distributors
D) agencies
E) retailers
Answer: B
Difficulty: Easy
10) The complex network of vendors that produce components and ingredients which are then
sold to the manufacturer is known as the ________.
A) network chain
B) channel of distribution
C) supply chain
D) ingredient chain
E) distribution chain
Answer: C
Difficulty: Easy
11) The ________ refers to the various companies that are involved in moving a product from its
manufacturer into the hands of its end buyers.
A) network chain
B) distribution chain
C) supply chain
D) ingredient chain
E) promotion network
Answer: B
Difficulty: Easy
12) What term is used to mean either a place where an exchange occurs or a particular type of
buyer?
A) market
B) position
C) channel
D) demographic
E) partner
Answer: A
Difficulty: Easy

13) The percentage of the total sales in a product category that a particular brand has is called the
brand's ________.
A) position
B) market segment
C) distribution
D) share of market
E) exchange
Answer: D
Difficulty: Easy
14) Which of the following is NOT considered a main type of market?

A) consumer
B) business-to-business
C) channel
D) institutional
E) media
Answer: E
15) ________ markets consist of people who buy products and services for personal or
household use.
A) Consumer
B) Business-to-business
C) Channel
D) Institutional
E) Media
Answer: A
Difficulty: Easy
16) ________ markets consist of companies that buy products or services to use in their own
businesses or in making other products.
A) Consumer
C) Distribution
D) Institutional
E) Indirect
Answer: B
Difficulty: Easy

17) ________ markets include a wide variety of profit and nonprofit organizations, such as
hospitals, government agencies, and schools, that provide goods and services for the benefit of
society.
A) Consumer
C) Channel
D) Institutional
E) Distribution
Answer: D
Difficulty: Easy
18) ________ markets are made up of members of a company's distribution chain.

A) Consumer
C) Channel
D) Institutional
E) Media
Answer: C
Difficulty: Easy
19) Resellers in a channel market are also known as ________.

A) suppliers
B) vendors
C) intermediaries
D) shareholders
E) competitors
Answer: C
20) Most marketing communication dollars are spent on ________ markets.

A) consumer
B) business-to-business
C) media
D) channel
E) institutional
Answer: A

21) Marketing communication that focuses primarily on price and its relation to value is called
________.
A) price copy
B) prestige pricing
C) direct marketing
D) prospecting
E) added value
Answer: A
Difficulty: Easy
22) Collectively, the companies involved in moving a product to its customers are called the
________.
A) supply chain
B) distribution chain
C) institutional market
D) consumer market
E) trade market
Answer: B
Difficulty: Easy
23) The identification of potential customers is called ________.

A) customer service
B) lead generation
C) direct marketing
D) personal sales
E) field sales
Answer: B
Difficulty: Easy
24) In which type of personal selling does a sales clerk provide assistance to store customers?
A) prospecting
B) field sales
C) retail selling
D) direct marketing
E) lead selling
Answer: C

25) In which type of personal selling does a representative make sales calls at a customer's place
of business?
A) prospecting
B) field sales
C) retail selling
D) direct marketing
E) lead selling
Answer: B
26) Which of the following refers to a unique brand attribute that is significantly important to
customers?
A) brand parity
B) brand equity
D) psychological pricing
E) brand meaning
Answer: C
Difficulty: Easy
27) A strategy or activity that makes a product more useful or appealing to consumers or
distribution partners is called ________.
A) product adaption
B) brand identity
C) a pull strategy
D) a push strategy
E) added value
Answer: E
Difficulty: Easy
28) Which of the following is NOT a way marketing communication adds value to a product?
A) making the product appear more desirable
B) presenting the product as a status symbol
C) making the product more affordable for consumers to buy
D) providing news and useful information of interest to consumers
E) All of the above are ways advertising adds value to a product.
Answer: C
Difficulty: Difficult

29) Which marketing mix element includes product design, quality, performance, and
packaging?
A) distribution
B) branding
C) product
D) place
E) promotion
Answer: C
Difficulty: Easy
30) Which marketing mix element includes personal selling, advertising, public relations, sales
promotion, direct marketing, and events and sponsorships?
A) price
B) distribution
C) product
D) place
E) promotion
Answer: E
Difficulty: Easy
31) The promotion "P" of marketing is also known as ________.

A) product
B) distribution
C) price
D) brand communication
E) differentiation
Answer: D
Difficulty: Easy
32) Which element of the marketing mix includes distribution channels and strategies?
A) product
B) promotion
C) price
D) communication
E) place
Answer: E
Difficulty: Easy

33) Which of the following is LEAST likely to be a factor on which the price of a product is
based?
A) what the market will bear
B) the amount of support provided by resellers
C) the expected margin of profit
D) the consumer's ability to gauge the value of the product
E) the relative value of the product
Answer: B
34) A consumer's ability to gauge the value of a product is referred to as the ________.
A) psychological price
B) price/value proposition
C) exchange rate
D) comparative price
E) value exchange
Answer: B
35) Which pricing strategy uses marketing communication to manipulate the customer's
judgment of value?
A) psychological pricing
B) true pricing
C) distribution pricing
D) copy pricing
E) value pricing
Answer: A
Difficulty: Easy
36) Which pricing strategy is used to communicate a dramatic or temporary price reduction?
A) promotional pricing
B) value pricing
C) parity pricing
D) copy pricing
E) prestige pricing
Answer: A

37) Using ________, a marketer sets a high price for a product to make the product seem worthy
or valuable.
A) prestige pricing
B) value pricing
C) distribution pricing
D) promotional pricing
E) customary pricing
Answer: A
38) When a company distributes its products directly to buyers without the use of a reseller, the
company is using ________.
A) indirect marketing
B) no-channel marketing
C) direct marketing
D) indirect channel marketing
Answer: C
Difficulty: Easy
39) Which of the following refers to the help provided to a customer before, during, and after a
purchase?
A) customer service
B) brand stewardship
C) brand management
D) relationship marketing
Answer: A
Difficulty: Easy
40) Which strategy directs marketing efforts at the consumer?

A) push
B) prospecting
C) pull
D) lead generation
E) intermediary
Answer: C
Difficulty: Easy

41) A(n) ________ strategy directs marketing efforts at resellers, and success depends on the
ability of these intermediaries to market the product, which they often do with advertising.
A) push
B) pull
C) prospecting
D) direct
E) lead generation
Answer: A
Difficulty: Easy
42) Which marketing communication tool uses face-to-face contact between the marketer and a
prospective customer?
A) advertising
B) sales promotion
C) public relations
D) personal sales
E) word-of-mouth
Answer: D
Difficulty: Easy
43) Procter & Gamble has sales of almost $50 billion and spends more than $4 billion on
advertising every year. The company's corporate brand value is estimated to be more than $107
billion. Which type of key marketing player does P&G represent?
A) marketer
B) supplier or vendor
C) distributor
D) agency
E) media
Answer: A
AACSB: Analytical thinking

44) Amco, Inc. manufactures small electronic components that become integral parts of the
electronic systems in automobiles. Amco does not sell directly to auto manufacturers, but rather
through brokers that are involved in selling the components to the auto manufacturers.
Additionally, another company is employed to deliver the goods. All of these organizations are
part of the ________ in getting electronic component parts to the automobile manufacturers.
A) distribution chain
B) supply chain
C) marketing network
D) channel market
E) share of market
Answer: B
45) Puma sells its edgy designs to trendy retailers but also sells its more mainstream products in
stores such as Foot Locker. Which marketing mix element does this strategy illustrate?
A) product
B) price
C) place
D) promotion
E) branding
Answer: C
46) During a World Cup held in Japan and South Korea, Puma got a well-known sushi chef to
create a special Puma sushi roll that was served in select Japanese restaurants in cities around the
world. Puma also discretely announced the sponsorship in its company-branded chopsticks, sake
cups, and napkins. At the same time, Puma partnered with the Terence Conran design shop to
sell an exclusive version of its World Cup soccer boot, holding weekend sushi-making events at
the home furnishings store. Which marketing mix element does this strategy illustrate?
A) product
B) price
C) place
D) promotion
E) push
Answer: D

47) A.Y. McDonald, a manufacturer of pumps and plumbing valves, employs regional
salespeople to sell its products to wholesalers and cities. This is an example of ________.
A) sales promotion
B) personal selling
C) public relations
D) indirect marketing
E) advertising
Answer: B
48) An ad in a professional journal targeted to an audience of dentists asked dentists to

recommend Crest toothpaste to their patients. It offered toothpaste samples that dentists could
buy at cost to give to their patients to encourage patients to take better care of their teeth. The
manufacturer of Crest toothpaste was using ________.
A) personal selling
B) direct marketing
C) a push strategy
D) a pull strategy
E) public relations
Answer: C
49) Glasis is a type of paint made specifically for use on cars. An ad in Motor Trend magazine
advising consumers to request their body shops use Glasis paint is an example of how a company
uses ________.
A) word-of-mouth influence
B) public relations
C) buzz marketing
D) a push strategy
E) a pull strategy
Answer: E

Refer to the following passage to answer the questions below.
Johnson & Johnson manufactures health and beauty aid products under several brand names. The
company sells its products to end consumers through retail stores such as grocery, drug, and
discount stores. J&J employs a sales force that calls on intermediaries, such as wholesalers and
retailers, and spends part of the promotion budget on trade deals to influence intermediaries to
carry the company's brands. The remainder of J&J's promotion budget is spent on mass
advertising and sales promotions, such as coupons, targeted toward consumers.
50) Which promotion strategy is J&J pursuing?

A) push only
B) promotional pricing
C) direct
D) pull only
E) push and pull
Answer: E
51) J&J also markets its Tylenol brand of pain relievers to hospitals. What type of market is that?
A) consumer
B) primary
C) institutional
D) reseller
E) secondary
Answer: C
52) More companies are adopting the concept of ________, which is the practice of unifying all
brand communication messages and tools as well as the messages from the marketing mix
decisions.
A) integrated marketing communications
B) integrated personal selling
C) added value
D) brand integrity
E) buzz marketing
Answer: A
Learning Objective: 1.2: What is integrated marketing communication?
Difficulty: Easy

53) Integrated marketing communications is designed to produce better communications

________.
A) consistency
B) creativity
C) simplicity
D) variety
E) independence
Answer: A
54) Integrated marketing communications require a company's mass-market advertisements,

website, email, and personal selling communications to have ________.
A) equal portions of the advertising budget
B) the same return on investment
C) separate marketing objectives
D) the same target audience
E) a consistent message, look, and feel
Answer: E
55) Advertising, sales promotion, personal selling, public relations, and direct marketing are all
promotional tools ________.
A) that should be integrated under the concept of integrated marketing communications
B) used in business-to-business markets but not consumer markets
C) used for push strategies but not pull strategies
D) used for pull strategies but not push strategies
E) used in consumer markets but not business-to-business markets
Answer: A
56) Harpo Enterprises maintains OWN (the Oprah Winfrey Network), a website, and O
magazine. Because Harpo Enterprises practices integrated marketing communications, these
different brand contacts all maintain ________ in design and tone.
A) variety
B) independence
C) consistency
D) creativity
E) simplicity
Answer: C

57) Management of a company that adheres to the principle of integrated marketing

communications is most likely to believe which of the following?
A) The use of multiple marketing communications channels is advantageous.
B) The use of a single marketing communications channel is advantageous.
C) Long-term relationships with customers are best nurtured through sales promotion.
D) Long-term relationships with customers are best nurtured through public relations.
E) Short-term relationships with customers are more profitable than long-term relationships with
customers.
Answer: A
AACSB: Application of knowledge
58) Which of the following creates the intangible elements of a brand that make it memorable
and meaningful to a consumer?
A) advertising
B) branding
C) prospecting
D) marketing
E) integrating
Answer: B
Difficulty: Easy
59) Hamburgers and toothpaste are both examples of ________.

A) services
B) ideas
C) brands
D) products
E) markets
Answer: D
60) A(n) ________ is a perception, often imbued with emotion, which results from experiences
with and information about a company or a line of products.
A) advertisement
B) brand
C) tagline
D) logo
E) trademark
Answer: B
Difficulty: Easy

61) Which of the following is an intangible feature of a brand?

A) the product's design
B) the product's performance
C) the product's package
D) the product's perceived value
E) the product's ingredients or components
Answer: D
62) Parity products are those that have ________.

A) no brand name
B) few competitors
C) few distinguishing features
D) a store's label
E) a generic label
Answer: C
Difficulty: Easy
63) Which of the following is a tangible feature of a brand?

A) a person's feelings about the brand
B) a person's experience with the brand
C) the product's performance
D) the product's perceived value
E) the brand's image
Answer: C
64) Which of the following exists in consumers' hearts and minds?

A) brand equity
B) brand parity
C) brand meaning
D) brand trademark
E) brand license
Answer: C

65) Which of the following was the top global brand, based on brand value, in 2016?
A) Google
B) Apple
C) Coca-Cola
D) McDonald's
E) Walmart
Answer: A
66) Which of the following is NOT a desirable quality for a brand name?
A) It should suggest something about the product's benefits and qualities.
B) It should be easy to pronounce, recognize, and remember.
C) The brand should be a long word to get attention.
D) The name should translate easily into foreign languages.
E) It should be distinctive.
Answer: C
67) A ________ is a legal sign or symbol that indicates ownership.

A) trademark
B) logo
C) brand
D) patent
E) brand position
Answer: A
Difficulty: Easy
68) ________ refers to how consumers see a brand relative to the other brands in the product
category.
A) Segmenting
B) Targeting
C) Differentiating
D) Positioning
E) Trademarking
Answer: D

69) Bold, fun, exciting, and daring are all examples of ________.
A) brand promises
B) brand positions
C) brand personalities
D) brand equities
E) brand value
Answer: C
70) Brand value comes in two forms: the value to the ________ and the value to the ________.
A) consumer; competitor
B) consumer; corporation
C) competitor; channel
D) corporation; competitor
E) shareholder; stakeholder
Answer: B
71) Brand ________ programs offer customers rewards for repeat business.
A) value
B) equity
C) extension
D) integration
E) loyalty
Answer: E
Difficulty: Easy
72) ________ is the intangible value of the brand based on the relationships with its
stakeholders, as well as intellectual property.
A) Brand position
B) Brand parity
C) Brand image
D) Brand identity
E) Brand equity
Answer: E
Difficulty: Easy

73) Which of the following measures the financial value the brand contributes to a company?
A) trademark
B) copyright
C) brand image
D) brand identity
E) brand equity
Answer: E
Difficulty: Easy
74) ________ refers to the use of a brand name of a component in another product's advertising
and promotion.
A) Co-branding
B) Ingredient branding
C) Inside branding
D) Brand licensing
E) Integrated branding
Answer: B
Difficulty: Easy
75) A company that uses an established brand name with a related line of products is using a(n)
________.
A) co-brand
B) ingredient brand
C) brand extension
D) licensed brand
E) parity brand
Answer: C
Difficulty: Easy
76) Which of the following is a strategy that uses two brand names owned by two separate
companies to create a partnership offering?
A) co-branding
B) equity branding
C) brand licensing
D) integrated branding
E) parity branding
Answer: A
Difficulty: Easy

77) Using ________, a partner company rents another company's brand name and transfers some
of that brand equity to another product.
A) co-branding
B) equity branding
C) brand licensing
D) integrated branding
E) parity branding
Answer: C
Difficulty: Easy
78) Through its communication of a ________, a brand sets expectations for what a customer
believes will happen when the product is used.
A) brand promise
B) point of differentiation
D) brand personality
E) brand equity
Answer: A
Difficulty: Easy
79) A ________ brand is one that is marketed in a single country.

A) house
B) local
C) regional
D) store
E) private
Answer: B
Difficulty: Easy
80) A(n) ________ brand is available in a number of different countries in various parts of the
world.
A) parity
B) local
C) regional
D) extension
E) international
Answer: E
Difficulty: Easy

81) A company that takes a ________ approach to international marketing tries to make
accommodations in its marketing mix for cultural differences.
A) parity
B) domestic
C) global
D) standardized
E) localized
Answer: E
AACSB: Diverse and multicultural work environments
82) Brand relationship strategies aim to do which of the following?

A) introduce a product to new markets
B) demonstrate a product's effectiveness
C) extend a brand's image to a new product
D) highlight a competitive advantage
E) build long-term loyalty and trust with customers
Answer: E
83) Which of the following refers to the rapid spread of a brand message on the Internet through
a wide network of contacts?
A) brand stewardship
B) brand parity
C) direct marketing
D) indirect marketing
E) viral marketing
Answer: E
Difficulty: Easy

84) Peter purchased an inexpensive necklace from a department store to give to his sweetheart,
Julie, on Valentine's Day. He didn't want her to know that he did not spend very much for the
jewelry, so he put it in a box he had from an upscale jewelry store that sells only expensive
items. When Julie unwrapped her gift, she was excited to see that it came from this store and
absolutely loved the necklace Peter gave her. Which key concept of marketing does this
illustrate?
A) push strategy
B) branding
C) integration
D) pull strategy
E) distribution
Answer: B
85) Laurie owns a 2014 Honda Accord, which is the third Honda vehicle that she and her
husband have owned. They describe themselves as a "Honda family" and intend to purchase
another Honda automobile when their daughter gets her driver's license. They know and trust
Hondas. Which key concept of marketing does this illustrate?
A) brand framework
B) brand relationship
C) brand personality
D) cause marketing
E) organization identity
Answer: B
86) When Tylenol pain relief capsules were tampered with in 1982, resulting in the death of
several consumers, the manufacturer pulled all of its products from store shelves, redesigned
packaging to resist tampering, and reintroduced noncapsule forms of the product. This was very
expensive for Tylenol to do, but the company knew that the reputation, meaning, and value that
its brand name had acquired over time held financial value. Today, Tylenol brand medications
have the reputation of being high-quality products. The reputation, meaning, and value that the
Tylenol brand name has acquired over time is known as ________.
A) brand personality
B) brand transformation
C) brand framework
D) brand relationship
E) brand equity
Answer: E

87) Intel manufactures computer chips that are part of several personal computer manufacturers'
finished products. Intel and the computer manufacturers realized that customers valued the
superior quality of Intel computer chips and were asking whether or not the computer they were
considering purchasing contained an Intel computer chip. As a result, Intel and computer
manufacturers started communicating through advertising and other promotional tools that
there's "Intel Inside." This is an example of ________.
A) primary branding
B) secondary branding
C) supply chain branding
D) component branding
E) ingredient branding
Answer: E
88) An apparel marketer is planning to launch an existing brand name into a new product
category. Which brand development strategy is being implemented?
A) co-branding
B) brand extension
C) ingredient branding
D) brand licensing
E) rebranding
Answer: B
89) Which of the following adds primarily psychological value to a product?

A) branding
B) quality
C) features
D) convenience
E) service
Answer: A

90) Which of the following is an advantage offered by co-branding?

A) Manufacturers do not have to invest in creating their own brand names.
B) Retailers have exclusive products that cannot be purchased from competitors.
C) A company can expand its existing brand into a category it otherwise might have difficulty
entering alone.
D) Advertising, sales, promotion, and marketing do not need to be as carefully coordinated.
E) Brand equity is stabilized.
Answer: C
91) The term stakeholders refers to customers of a product as well as employees of the company
that produces and markets the product.
Answer: TRUE
92) The goal in marketing is to sell as many products as possible.

Answer: FALSE
93) The key players in the marketing industry include the marketer, suppliers and vendors,
distributors and retailers, and marketing partners, such as agencies.
Answer: TRUE
94) The materials and ingredients used in producing the product are obtained from other
companies, who are referred to as distributors.
Answer: FALSE
95) The channel of distribution refers to the complex network of suppliers who produce
components and ingredients that are then sold to the manufacturer.
Answer: FALSE
96) The supply chain refers to the various companies that are involved in moving a product from
its manufacturer into the hands of its buyer.
Answer: FALSE

97) Only manufacturers advertise.

Answer: FALSE
98) A market can refer to either a place or a particular type of buyer.

Answer: TRUE
99) Institutional markets consist of people who buy products and services for personal use.
Answer: FALSE
100) Institutional markets are made up of nonprofit organizations only.

Answer: FALSE
101) Channel marketing targets intermediaries rather than consumers.

Answer: TRUE
102) The only marketing mix element with communication effects is promotion.
Answer: FALSE
103) Product performance delivers the loudest message about a product and determines whether
the product is purchased again.
Answer: TRUE
104) Price copy is the focus of a great deal of retail advertising.

Answer: TRUE
105) The process of assessing whether there are identifiable groups within the market whose
needs and wants intersect with the product and its features is known as point of differentiation.
Answer: FALSE

106) The phrase "clicks or bricks" refers to whether a product is sold online or in a traditional
store.
Answer: TRUE
107) The goal of brand communication is to create immediate sales to people who are shopping
for a product.
Answer: FALSE
108) Information from the marketing mix can add value to a brand.
Answer: TRUE
109) A push strategy directs marketing efforts at the consumer in an attempt to stimulate
consumer demand.
Answer: FALSE
110) In personal sales, leads are also known as prospects.

Answer: TRUE
111) A car manufacturer buys tires from a tire manufacturer. These manufacturers are part of the
institutional market.
Answer: FALSE
112) Channel marketing is used to target messages to intermediaries rather than consumers.
Answer: TRUE
113) An IMC program is more complex than a traditional advertising plan.

Answer: TRUE

114) Integrated marketing communication (IMC) is a recent trend that uses databases to drive
communication with customers and keep track of their interactions with a company.
Answer: FALSE
Difficulty: Easy
AACSB: Information technology
115) Synergy is created when the components of integrated marketing communication have more
impact as a whole than they would individually.
Answer: TRUE
116) The branding of an organization will occur even if a branding process is not managed.
Answer: TRUE
117) Advertising is the process of creating the tangible and intangible elements of a brand.
Answer: FALSE
118) Goodwill refers to the part of brand equity that is based on relationships.
Answer: TRUE
119) Co-branding means acknowledging a supplier's brand as an important product feature or

component.
Answer: FALSE
120) In marketing terms, ROI stands for rate of interest.

Answer: FALSE
Difficulty: Easy
121) Marketers who calculate ROI do not need to use other tools or techniques to evaluate the
efficiency and effectiveness of their marketing communications.
Answer: FALSE

122) The calculation of ROI identifies how much money a brand made in comparison to its
expenses.
Answer: TRUE
123) Word-of-mouth communication about a product is persuasive because people tend to have
more faith in comments from friends and family members than in planned marketing
communication messages.
Answer: TRUE
124) Retailers and wholesalers who have created their own brands—such as Walmart's Sam's
Choice beverages and food products—are participating in co-branding.
Answer: FALSE
125) To maximize the toothpaste market in China, Crest needs to convince more of the Chinese
population to brush their teeth three times a day. Crest is most likely to use a standardized
approach for its marketing in China.
Answer: FALSE
126) Describe the roles of the four key players in marketing.

Answer:
(1) Marketer (Client): Any company or organization behind the product (i.e., the organization,
company, or manufacturer producing the product and offering it for sale).
(2) Suppliers and vendors: Companies that supply the materials and ingredients used in
producing the product. In marketing practice these suppliers and vendors are partners in the
creation of a successful product. The term supply chain refers to the network of suppliers who
produce components that are sold to manufacturers.
(3) Distributors and retailers: Companies that are involved in moving a product from its
manufacturer into the hands of its buyer. The various companies involved in this are referred to
as the channel of distribution.
(4) Marketing partners: These companies are advertising agencies or marketing communication
firms.

127) Name and describe the four main types of markets, and discuss characteristics of
advertising targeted toward each market.
Answer:
(1) Consumer markets consist of people who buy products and services for personal or
household use. Just about any product that an individual purchases including clothing, food,
books, health and beauty aids, and so forth can be advertised to consumers through mass media
such as radio, television, newspapers, general consumer magazines, and direct-response media,
such as direct mail. Businesses spend most of their advertising dollars on this market.
(2) Business-to-business (B2B) markets consist of companies that buy products or services to
use in their own businesses or in making other products. Promotion tends to focus on facts and
information.
(3) Institutional markets include a wide variety of profit and nonprofit organizations such as
hospitals, government agencies, and schools that provide goods and services for the benefit of
society. This market is typically reached through the same means as industrial markets.
(4) Channel markets are made up of members of the distribution chain, also known as resellers
or intermediaries. This market is also typically reached through the same means as industrial and
institutional markets.
128) How are the product, price, and place elements of the marketing mix involved in
contributing communication effects in the marketing mix?
Answer:
(1) Product: When a product performs well, it sends a positive message about the brand,
communicating to the customer that it is okay to repurchase the product. On the other hand,
when a product does not perform well, the message is that the customer should not repurchase
the product.
(2) Price: The price of a product sends a message about its quality and status. The higher the
price is, the higher expectations of quality and status consumers may have.
(3) Place: Where and how a brand is available contributes to the image of the brand. The
objective is to match the distribution to the product quality, brand personality, and price.
129) What is the difference between a supply chain and a distribution chain?
Answer: A supply chain is made up of suppliers who produce components and ingredients that
are sold to a manufacturer. A distribution chain is made up of all the companies that move a
finished product from the manufacturer to its buyers.

130) What are the typical communication goals in a product launch?

Answer: When introducing a new product or brand with a product launch, a company's
communication goals are typically to build awareness of the new brand, explain how the new
product works, and identify how it is different from competitors' products.
131) Blenco, Inc. is a manufacturer of frozen breakfast products, such as biscuits, pancakes, and
waffles. Blenco does not spend any money on consumer advertising or promotions, but rather
concentrates its promotion budget on intermediaries in the channel of distribution. What
promotion strategy is Blenco pursuing, and which promotion tools are most appropriate for
implementing this strategy?
Answer: Blenco is pursuing a push promotion strategy that concentrates the flow of marketing
communication on the members of the channel of distribution rather than on end consumers.
Blenco is most likely offering retailers promotional incentives to get its products in the channel
of distribution.
132) You just interviewed for a job with Dial, Inc. and learned that they are looking for someone
who will call on grocery, drug, and convenience stores to sell and service Dial's health and
beauty aid items to these types of retailers. What type of personal selling does this represent?
Answer: Field sales. Field sales are a type of personal selling that includes calls at the place of
business by a field representative.
133) Explain the concept of integrated marketing communications.

Answer: IMC calls for recognizing all contact points where the customer may encounter the
company and its brands. A company wants to deliver a consistent and positive message with
each contact. IMC ties together all of the company's messages and images, avoiding the
confusion that can arise from customers receiving varied messages from a variety of media.
Integration can create synergy, increasing the impact of a whole set of communications about a
brand.
134) How does integrated marketing communication (IMC) build brand identity?
Answer: IMC builds brand identity and strong customer relationships by tying together all of the
company's messages and images.

135) Describe the evolution of Procter & Gamble's Ivory soap. How does it illustrate the concept
of branding?
Answer: P&G created identity elements for its brand Ivory before anyone had thought of
making a bar of soap a distinctive brand. The Ivory brand identity system also called attention to
innovative features of the product. In the 1800s, soap wasn't like it is today; rather, it was
homemade from lye, fats, and fireplace ashes. It was a soft jelly-like yellowish soap that would
clean, but if it fell to the bottom of a pail, it dissolved into mush. The Castile bar, which was a
pure white soap imported from the Mediterranean and made from the finest olive oil, was
considered the benchmark for quality soap and was highly expensive. P&G discovered a formula
that produced a uniform, predictable bar soap, which they provided in wooden boxes to both
armies during the Civil War, introducing the concept of mass production. After the war there was
a huge market for the soap because returning soldiers demanded the bars for home use. However,
these bars were still yellow and sank in a tub of water. The problem was solved when P&G
created a white soap that was much like the Castile bar. This bar became the "soap that floats"
when extra air was accidentally whipped into it, making the bar lighter. This claim—"It floats"—
became one of the world's greatest statements of a product benefit. The soap was named "Ivory
soap," and it became a product that consumers asked for by name. P&G also discovered that
Ivory had only 0.56 percent impurities, leading to the claim that it was "99 and 44/100 percent
pure," which is one of the most famous slogans in brand history.
136) What kind of control does a company have over the meaning of one of its brands?
Answer: A company owns a brand name and a symbol, and can certainly influence what people
think about the brand. However, the brand meaning is ultimately created by consumers because
the meaning exists in their minds, derived from their own experiences with the brand.
137) Consider such brand names as A1 Steak Sauce, 409, A & D Ointment, A & W Root Beer,
and Super 8. Why might such names with alphanumeric characters aid in brand name selection?
Answer: Such brands are easy to pronounce, easy to recognize, and easy to remember.
138) What is the difference between an intangible feature and a tangible feature?
Answer: A product's tangible features, such as design and performance, can be observed or
touched. Intangible features, such as brand image, are not physical and cannot be touched or
observed.

139) Why are the intangible features of a brand just as important as the tangible features of a
brand?
Answer: Intangible features, such as personal experience, create the emotional bonds people
have with their favorite brands and contribute to consumers' brand concept.
140) Why is it important for a brand promise to be simple and honest?

Answer: Consumers who purchase the product and believe it does not live up to the promise will
develop a negative image of the brand; they will be less likely to become loyal customers.
141) How does a brand name add value to a product?

Answer: Quality and consistency can be identified through a brand; experience with or
knowledge of another's experience with a brand helps a buyer know what features, benefits, and
quality to expect from a product.
142) Explain why someone would rather have a Rolex watch than a Timex watch, which is as
reliable as a Rolex but considerably less expensive.
Answer: Although both are well-known brands, Rolex has built its brand image on quality and
luxury. It's a status symbol to own a Rolex, and the watch is perceived more as a piece of jewelry
than merely a timepiece. Timex is known as an inexpensive, reliable timepiece. Through
effective branding, Rolex has transformed this product by creating a special meaning for it, and
the meaning of the brand tells something about the person wearing that brand.
AACSB: Reflective thinking
143) What is a brand loyalty program? Give an example of one.

Answer: A brand loyalty program offers consumers rewards for their repeat business. Any
program that awards points, money, or free products for repeated purchases could be used as an
example.

144) When Dell indicates in its ads and on its computer boxes "Intel inside," what type of
branding is this, and why does Dell do this?
Answer: This is called ingredient branding, which means acknowledging a supplier's brand as an
important product feature. Dell knows that the quality and reputation of the Intel brand of
computer chips adds value to its product and wants to communicate that to buyers.
145) How do marketing managers use ROI?

Answer: ROI stands for return on marketing investment. It is a calculation that marketing
managers can use to determine the relationship between what a marketing program cost and what
it delivered in sales.
146) What types of products would be successful with standardized global marketing?
Answer: Products that require no change to the product itself or to the product's promotion
would follow a standardized marketing mix.
147) What are brand relationship strategies, and why are they important?
Answer: Relationship-building programs have shifted the focus from increasing one-time
purchases to increasing repeat purchases and maintaining long-term brand loyalty. Relationship
marketing can be directed at all of a brand's critical stakeholders, from consumers to employees
and suppliers.
148) Why might a viral marketing strategy be risky?

Answer: Viral marketing refers to the rapid spread of marketing communication—whether
generated by consumers or by the company—through a wide network of contacts on the Internet.
A brand can start a viral process but cannot control it.

Refer to the passage below to answer the following questions.
Gore-Tex is a revolutionary material that is used in several types of outer- and athletic-wear that
can keep consumers warm and dry in the winter but also cool in the summer. It is lighter and
stronger than other types of materials, such as wool or cotton, and costs more. However, many
consumers of these products were not aware of the advantages of Gore-Tex when comparing
products and were put off by the very high price. To change this, Gore-Tex hired an advertising
agency to assist in creating a special meaning for the brand and to communicate the advantages
to end-user consumers. Gore-Tex also worked with the manufacturers of the products into which
Gore-Tex was incorporated to encourage them to call attention to the fact that Gore-Tex is used
in their products.
149) Which key concept in marketing is illustrated by Gore-Tex's desire to create a special
meaning for it, and how can advertising help accomplish this?
Answer: Branding is the process of creating a special meaning for a product, one that makes it
distinctive in the marketplace and in its product category. Brand image is the result of
communication as well as consumers' own personal experiences with the product. A brand, and
the advertising behind it, creates familiarity. Advertising can also be used to communicate the
distinctive advantage of Gore-Tex over other types of material.
150) Manufacturers of apparel products using Gore-Tex include that information on their product
labels as well as in their advertising. What is this practice called, and why do these
manufacturers use this approach?
Answer: This is known as ingredient branding, which means acknowledging a supplier's brand
as an important product feature. Every contribution from the supply chain adds value to the
product, and in practice, suppliers and vendors are partners in the creation of a successful
product. The quality of the Gore-Tex brand of material enhances the quality of the finished
products that it goes into.


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Test Bank - Advertising and IMC Principles And Practice, 11th Edition (Moriarty, 2019)

Advertising & IMC: Principles and Practice, 11e (Moriarty et al.)

1) Marcom is an abbreviation for ________.

2) The goal of marketing is achieved by matching a product's availability to the ________.

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5) The marketing mix is also known as the ________.

6) To marketing communication partners, the company or firm behind a brand is referred to as

8) Which key player in marketing refers to the organization, company, or manufacturer

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14) Which of the following is NOT considered a main type of market?

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18) ________ markets are made up of members of a company's distribution chain.

19) Resellers in a channel market are also known as ________.

20) Most marketing communication dollars are spent on ________ markets.

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23) The identification of potential customers is called ________.

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31) The promotion "P" of marketing is also known as ________.

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40) Which strategy directs marketing efforts at the consumer?

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48) An ad in a professional journal targeted to an audience of dentists asked dentists to

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Refer to the following passage to answer the questions below.

50) Which promotion strategy is J&J pursuing?

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53) Integrated marketing communications is designed to produce better communications

54) Integrated marketing communications require a company's mass-market advertisements,

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57) Management of a company that adheres to the principle of integrated marketing

59) Hamburgers and toothpaste are both examples of ________.

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61) Which of the following is an intangible feature of a brand?

62) Parity products are those that have ________.

63) Which of the following is a tangible feature of a brand?

64) Which of the following exists in consumers' hearts and minds?

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67) A ________ is a legal sign or symbol that indicates ownership.

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79) A ________ brand is one that is marketed in a single country.

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82) Brand relationship strategies aim to do which of the following?

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89) Which of the following adds primarily psychological value to a product?

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90) Which of the following is an advantage offered by co-branding?

92) The goal in marketing is to sell as many products as possible.

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97) Only manufacturers advertise.

98) A market can refer to either a place or a particular type of buyer.

100) Institutional markets are made up of nonprofit organizations only.